MCOtoATL From United States of America, joined Sep 1999, 474 posts, RR: 5 Posted (10 years 5 months 4 days 22 hours ago) and read 688 times:
With United Airlines declaring Chapter 11, many people in the US are obviously unclear about this process. United Airlines is not going out of business; chapter 11 provides some protection form creditors as the carrier seeks to restructure.
This made me wonder about how US bankruptcy compares to that of other nations. Do struggling carriers simply disappear in various countries, or are their steps to try to turn the tide?
Ikarus From United Kingdom, joined Jan 2001, 3524 posts, RR: 2 Reply 1, posted (10 years 5 months 4 days 19 hours ago) and read 669 times:
The general procedure:
Liquidation. Complete disappearance of the airline, often overnight, sometimes leaving pax stranded all over the place (the old Germanwings, for example)
If it's a former national carrier in Europe:
Bail-out by the government.
Chapter 11 is quite a good thing. Quite useful. The Economist just had an article about all its advantages and why other countries should adopt the system...
Jj From Algeria, joined Jun 2001, 1227 posts, RR: 2 Reply 3, posted (10 years 5 months 4 days 17 hours ago) and read 648 times:
I understand here in Argentina, airlines first go into "concurso de acreedores" , which is an equivalent of Chapter 11. If no solution is found, they are liquidated (Chapter 7).
FYI: Aerolineas Argentinas, Austral, LAPA (Prev. known as ARG, then as AIRG) have all been operating under concurso de acreedores for more than an year...
Luisca From , joined Dec 1969, posts, RR: Reply 4, posted (10 years 5 months 4 days 16 hours ago) and read 630 times:
Here in panama if you cant pay up you simply say BYE BYE. Unlles you can personally negotiate with the creditors to save your buissenes, goverment bail outs are banned by the constitution, but you got 4 months of grace period if you cant pay up.
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From United States of America, joined Sep 1999, 474 posts, 
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